Lemonade, Inc. (LMND) vs RLI Corp. (RLI)

Lemonade, Inc. and RLI Corp. are both Insurance Property & Casualty companies. RLI Corp. is the larger, with a market value of $5.2B against $3.5B — 1.5× the size. Lemonade, Inc. has negative trailing earnings, so its P/E is not meaningful; RLI Corp. trades at 11.7×. Lemonade, Inc. grew revenue faster over the last twelve months: 62.3% against 8.69%. RLI Corp. has the higher net margin (22.2% vs −14.2%) and the higher return on invested capital (17.4% vs −25.6%). Across the 20 metrics below, RLI Corp. leads on 15 and Lemonade, Inc. on 5.

Valuation

Metric LMND RLI Insurance Property & Casualty median
P/E n/m 11.70 10.29
P/S 3.55 2.59 1.17
P/B 6.92 2.92 1.83
Price to free cash flow 427.02 9.90 7.48
EV/EBITDA n/m 10.10 7.49
EV/Sales 3.37 2.88 1.13
Earnings yield (4.07%) 8.55% 9.50%
Free cash flow yield 0.23% 10.10% 13.29%

Profitability

Metric LMND RLI Insurance Property & Casualty median
Gross margin 51.65% 35.51% 41.16%
Operating margin (13.67%) 28.50% 15.09%
Net margin (14.19%) 22.22% 11.51%
Free cash flow margin 0.83% 26.19% 17.59%
Return on equity (26.96%) 25.16% 18.19%
Return on assets (7.01%) 7.07% 3.74%
Return on invested capital (25.59%) 17.43% 12.06%

Growth

Metric LMND RLI Insurance Property & Casualty median
Revenue growth (TTM) 62.31% 8.69% 8.69%
EPS growth (last fiscal year) 21.40% 16.84% —
Revenue growth, 5-year CAGR 50.87% 13.86% 9.23%
Net income growth, 5-year CAGR 0.00% 20.75% 10.09%

Health

Metric LMND RLI Insurance Property & Casualty median
Debt to equity 0.41 0.17 0.25
Current ratio 0.81 0.26 0.42
Net debt to EBITDA 1.58 0.09 0.08

Dividend

Metric LMND RLI Insurance Property & Casualty median
Dividend yield — 2.08% 2.79%
Payout ratio 0.00 0.07 0.27

Size

Metric LMND RLI Insurance Property & Casualty median
Market cap 3.53b 5.15b 2.44b

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